NEC set to approve Rs4.46tr 'Development Plan'

June 02, 2026 (MLN): Pakistan’s National Economic Council (NEC), the apex body for economic policymaking, is set to convene on June 3 to deliberate on a proposed national development program worth Rs4.464 trillion for fiscal year 2026-27, according to officials familiar with the matter.

The forum is expected to assess a revised federal development budget of Rs1.326tr, up by Rs200bn from an earlier proposed allocation of Rs1.13tr, emphasizing the government’s push to strengthen public-sector investment and stimulate economic activity.

Officials said authorities also plan to brief the International Monetary Fund (IMF) on the proposed increase in federal development spending.

To offset the additional expenditure, the Ministry of Finance and the Federal Board of Revenue (FBR) have been tasked with identifying avenues to secure an extra Rs200bn in fiscal resources.

 However, sources said both institutions opposed raising the annual tax revenue target from Rs15.264tr to Rs15.464tr, citing concerns over limited collection capacity.

Instead, policymakers are weighing other fiscal and financial options to accommodate the higher allocation without disrupting overall budget discipline.

The proposed development envelope of Rs4.464tr comprises Rs3.138tr earmarked for provincial governments and Rs1.326tr designated for the federal government.

Among provinces, Punjab is expected to receive the largest share at Rs1.450tr, followed by Sindh at Rs816bn, Khyber Pakhtunkhwa at Rs564bn, and Balochistan at Rs308bn.

The meeting is likely to be chaired by the prime minister and attended by provincial chief ministers, finance ministers, and the prime minister of Azad Jammu and Kashmir.

Alongside development allocations, the NEC is expected to examine economic priorities and endorse major fiscal targets ahead of the federal budget announcement for FY2026-27.

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